Property managing an LLC I have an ownership stake in, unlicensed

[Donald Anderson]

I'm currently laying the groundwork on a multi-owner Real Estate Investment LLC (or other similar entity). While the LLC will be owned between myself a handful of trusted friends, I will likely be the only active member - the others are looking to passively invest. The business model is essentially buying rehab properties - either to flip or rent. While I'll be an investor and will make the same ROI from LLC profit, the LLC will also be paying me for my labor/management (assuming I continue to labor/manage).

In SC, one cannot manage another's property either for commission or a flat rate without a property management license.  I'm not interested in managing property that isn't "mine" and would rather not carry the burdens associated with a PM license.  I already hold a real estate salesperson's license - that's plenty.

With an LLC as a separate legal entity, I can understand myself not legally being able to manage any long-term rentals in exchange for a commission without a license. However, as I would hold an ownership stake in this LLC, I can also see me managing "my own" property being fine. I'd like to know where a multi-owner LLC stands, but I've been unable to find a clear-cut answer anywhere. Does anyone here have that answer?

[Drew Sygit]

@Donald Anderson make sure you spend a few dollars on a well written Operating and Partnership Agreement!